Economics Terms

1. Supply – The amount of a product.

2. Demand- The quantity of a product that buyers are willing to buy.

3. Scarcity- The insufficiency or shortness of a product.

4. Producer- A person who produces goods and services.

5. Consumer- A person or organization that uses a service.

6. Goods- Merchandise and wares that satisfy human wants.

7. Services- Work done for others as an occupation or business.

8. Entrepreneur- A person who organizes, operates, and assumes the risk for a business venture.

9. Cost- The price paid to acquire, produce, accomplish, or maintain anything.

10. Opportunity Cost- The cost of an alternative that must be forgone in order to pursue a certain action.

11. Competition- Attempts by two or more people or organizations to acquire the same goods or services.

12. Income- The monetary payment received for goods or services, or from other sources.

13. Expenditure- The amount of money paid out or amount of money spent.

14. Barter- To exchange in trade.

15. Inventory- The merchandise that a shop has on hand.

16. Invest- To commit money in order to gain a financial return.

17. Material- a group of ideas, facts, data, etc.

18. *Capitalism- an economic system in which investment in and ownership of the means of production.

19. *Socialism- a theory or system of social organization that advocates the vesting of the ownership and control of the means of production and distribution.

20. *Communism- a system of social organization in which all economic and social activity is controlled by a totalitarian state dominated by a single and self-perpetuating political party.